Close Menu
  • Crypto News
  • Markets
  • Bitcoin
  • Ethereum
  • XRP
  • Altcoins
  • Technology
  • More
    • Crypto Prices – Latest from BTC, ETH & XRP
    • NFT
    • DeFi

Subscribe to Updates

Get the latest crypto news and updates directly to your inbox.

Trending

Breakout or Breakdown? XRP $2.35 Test Could Decide Its Next Move

July 8, 2025

Dow Jones stalls as China warns against fresh trade tensions

July 8, 2025
Crypto Exchanges Exposed to $1B in Huione-linked USDT outflows

Crypto Exchanges Exposed to $1B in Huione-linked USDT outflows

July 8, 2025

PancakeSwap leads Binance Smart Chain revival

July 8, 2025

Semiconductor giant Sequans ditches cash for Bitcoin in $384m treasury overhaul

July 8, 2025
Facebook X (Twitter) Instagram
  • Advertise
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianoru Русскийes Españolzh-CN 简体中文hi हिन्दीja 日本語
Crypto Observer
  • Crypto News

    Breakout or Breakdown? XRP $2.35 Test Could Decide Its Next Move

    July 8, 2025

    CRO Surges After Truth Social’s Crypto Blue-Chip ETF Disclosure, XRP Underperforms

    July 8, 2025

    Ethereum Sees $6B In Tokenized Funds As Big Players Jump In

    July 8, 2025

    Persistent Selling on Binance Derivatives Meets Stubborn Bitcoin Resilience

    July 8, 2025

    Pi Network (PI) Crashes by 70% in 2 Months: Is There Any Hope Left?

    July 8, 2025
  • Markets
  • Bitcoin
  • Ethereum
  • XRP
  • Altcoins
  • Technology
  • More
    • Crypto Prices – Latest from BTC, ETH & XRP
    • NFT
    • DeFi
Facebook X (Twitter) Instagram
Crypto Observer
Home » NFT » Got ‘Worthless’ NFTs? This Startup Buys JPEGs for a Penny to Harvest Tax Losses
NFT

Got ‘Worthless’ NFTs? This Startup Buys JPEGs for a Penny to Harvest Tax Losses

Crypto Observer StaffBy Crypto Observer StaffDecember 29, 2023No Comments4 Mins Read
Facebook Twitter Pinterest Reddit Telegram Email LinkedIn Tumblr
Share
Facebook Twitter LinkedIn Pinterest Email

For the overwhelming majority of NFTs, the brutal bear market of the last two years wasn’t just a phase: Some 90-95% of NFT collections will never return to pre-bear market valuations, DappRadar Head of Research Pedro Herrera recently told Decrypt.

For many NFT owners, then, the question of what to do with millions of now “worthless” JPEGs is looming large. One potential solution: embracing those losses head-on, and using them to save on taxes.

Unsellable, a startup founded last year that buys illiquid NFTs off weary holders at a penny apiece in order to allow those owners to take tax write-offs, claims that it has already helped customers declare a combined $4.2 million worth of realized losses.

Skyler Hallgren, Unsellable’s co-founder, thinks that sum is just the tip of the iceberg for a sector that’s collapsed by well over 90% in trading volume and activity since barely two years ago.

“There’s this massive amount—potentially a billion dollars—in locked up, unrealized losses downstream from the NFT bubble of 2021,” Hallgren told Decrypt. “We can actually do something about that.”

Unsellable claims that its average user has been able to write off $4,200 worth of losses on NFTs that have lost substantial value. Last year, one user of the platform—Platform Engineer Thomas Mancini of NFT portfolio app Floor—said that he wrote off nearly $58,000 in NFT losses with Unsellable’s help.

Using @wgmiio and @unsellablenfts (no affiliation) to do some tax harvesting today. I can put together a thread and/or Loom if anyone is interested? pic.twitter.com/f06dMfUzd7

— Thomas Mancini (@NFTommo) December 7, 2022

A handful of “blue chip” NFT collections like Bored Ape Yacht Club, CryptoPunks, and Pudgy Penguins have retained value during the ongoing crypto winter; Unsellable doesn’t touch those.

Instead, it curates a sort of graveyard for broken NFT toys: rug pulled projects, abandoned collections, and coattail-riding copycats (think: Jacked Ape Club, Wealthy Ape Social Club, IRL Punks, BoobBirds—plus wild cards like My Banana Fucko.)

All in all, the company has collected about 26,000 NFTs so far.

Please be careful everyone. I had 5 worthless NFTs in my car, and someone broke the window and left 12 more pic.twitter.com/3Qzjn6CeAJ

— UNSELLABLE NFTs (@unsellablenfts) December 27, 2023

“Some of it’s weird, some of it’s grotesque, some of it’s funny; a very small percentage of it is aesthetically interesting,” Hallgren said. “Most of it is derivative projects.”

The company says that since it has no personal relationship with the NFT holders it purchases from. Because those holders have no expectation that they could buy back their NFTs at any point in the future, Unsellable says that the scheme is perfectly legal, akin to worthless stock buyback programs.

Unsellable charges a modest fee of about $2 worth of ETH for every NFT transfer. The company has managed to flip about 300 of the NFTs it has acquired, mostly for modest paydays in the range of $30 to $200. But sporadic NFT flipping isn’t the point of Unsellable, so its founders say.

“Our goal is, over time, to create the world’s largest collection of NFTs,” Hallgren said.

The entrepreneur is interested in one day selling the platform to a crypto tax firm or crypto tax software company; a few of which, he says, have already reached out about a potential acquisition.

As for the thousands of NFTs Unsellable already owns, he says a few parties have signaled interest in purchasing the collection. Some still harbor hopes that one of the thousands of dead or dying JPEGs might one day come alive again, and skyrocket in value.

Others, according to Hallgren, want to own the collection as a sort of museum piece—one that captures the incredible scale of speculative excess birthed at the NFT market’s height.

Edited by Andrew Hayward



Read the full article here

Web3
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Donald Trump Had Said, ‘The US Government Will Not Sell Cryptocurrency From Now On,’ But Something Strange Is Going On — Onchain Data Shows…

July 8, 2025

Big Development in TRUMP Memecoin! Another Surprise Altcoin to Be Released!

July 7, 2025

GUNZ Announces GUN Token Expansion to Solana

July 7, 2025

What are Floki’s Flokitars?

July 7, 2025
Add A Comment

Leave A Reply Cancel Reply

Subscribe to Updates

Get the latest crypto news and updates directly to your inbox.

Top Posts

Breakout or Breakdown? XRP $2.35 Test Could Decide Its Next Move

July 8, 2025

Dow Jones stalls as China warns against fresh trade tensions

July 8, 2025
Crypto Exchanges Exposed to $1B in Huione-linked USDT outflows

Crypto Exchanges Exposed to $1B in Huione-linked USDT outflows

July 8, 2025
Advertisement
Demo

Crypto Observer is your one-stop website for the latest crypto news and updates, follow us now to get the news that matters to you.

Facebook X (Twitter) Instagram
Crypto News

CRO Surges After Truth Social’s Crypto Blue-Chip ETF Disclosure, XRP Underperforms

July 8, 2025

Ethereum Sees $6B In Tokenized Funds As Big Players Jump In

July 8, 2025

Persistent Selling on Binance Derivatives Meets Stubborn Bitcoin Resilience

July 8, 2025
Get Informed

Subscribe to Updates

Get the latest crypto news and updates directly to your inbox.

Facebook X (Twitter)
  • Privacy Policy
  • Terms of use
  • Advertise with us | Publishing
  • Contact us
  • Crypto News – Press release
  • Newsletter sign up
  • Markets
  • Altcoins
  • Bitcoin
  • Crypto News
  • DeFi
  • Ethereum
  • Technology
  • Blockchain
  • AI
  • NFT
  • Thanks for joining us
© 2025 Crypto Observer. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.